Event Perpetuals are derivative contracts that permit speculation on the outcome of specific real-world events without a fixed expiration date, offering continuous exposure to an event’s probabilistic valuation. These financial instruments allow market participants to gain or hedge exposure to future occurrences beyond traditional asset price movements. They represent a specialized form of perpetual futures.
Mechanism
These instruments function on decentralized prediction markets, utilizing oracle networks to securely verify the outcomes of external events, thereby triggering automated payouts via smart contracts. A funding rate mechanism is typically employed to align the perpetual contract price with the underlying event probability. The contract terms define the event conditions and settlement logic.
Methodology
The strategic utility involves hedging against event-specific risks or speculating on future occurrences, providing a liquid market for probabilistic outcomes distinct from traditional financial derivatives. This method allows for granular exposure to political, economic, or social events. It facilitates a novel approach to risk transfer and information aggregation within a market structure.
This architectural upgrade to Hyperliquid's prediction market infrastructure introduces Event Perpetuals, establishing a robust framework for efficient binary event resolution.
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